A wild day on Wall Street saw the Dow Jones industrials plunge 340 points at one point, and then recover all but 15 of that loss by the close. Sharp sell-offs in Asia and Europe preceded the heavy morning selling. The S&P 500 rose 4.57 points, and the Nasdaq was off 7.76 – both far above their lows for the session.

The day’s trading kicked off with news from Countrywide Financial, the nation’s largest mortgage company, that it was drawing down an $11.5 billion credit line. Just after 12 p.m. EDT, the New York Stock Exchange imposed its limits on program trading as a way to help stem the trading losses. But not long after, bargain hunters stepped forward. In London, the FTSE-100 tumbled more than 4%, and France’s CAC-40 fell more than 3%. South Korea led Asia’s declies, falling almost 7%.

Source: New York Times

Dell to Restate Books; Audit Exposes Executive Tinkering

Dell Inc. will restate four years of financial results after an exhaustive internal investigation found that “senior executives” knew or requested that some balances be changed so the computer maker could meet quarterly earnings targets. The restatement covers fiscal years 2003-2006, and the first quarter of 2007, with net income being reduced $50 million to $150 million for the whole period, and revenues trimmed by under 1% a year. “According to the investigation, these activities typically occurred at the close of a quarter,” the Texas-based company said in a statement. Dell said it was bolstering its financial controls and revamping its finance department so that planning units would be segregated from accounting and reporting functions.

Source: Dell Inc.

Paulson Sees Slower U.S. Growth, But No Recession

Treasury Secretary reckons that even though U.S. economic growth was already faltering even before the global credit squeeze began, strong expansion elsewhere should more than offset any negative impact from tighter money. He’s also perfectly content to see some pain inflicted on those who weren’t “vigilant” enough in managing risk. “One of the natural consequences of the excesses is that some entities will cease to exist,” he says.

Source: Wall Street Journal

Countrywide Stock Tumbles Again on Bankruptcy Fears

Shares of Countrywide Financial, the biggest U.S. mortgage lender, plunged another 11% on Thursday, bringing their year-to-date loss to 50%, on concern the company could be forced into bankruptcy due to the turmoil in the credit markets. Countrywide shares now trade below $19, down from a 52-week high of $45.26 in January. The Calabasas, (Calif.)-based company said before the market’s open that it was drawing down all of an $11.5 billion credit line from 40 banks so that it could continue funding its operations. Like other home lenders, Countrywide has been pummeled by the squeeze in the global credit markets.

Source: The Motley Fool

KKR Sees Chance to Profit in Distressed Debt

Many investment banks are on the hook to finance billions of dollars in buyouts at a time when investor appetite for taking on riskier debt has disappeared. That’s likely to lead to a lot of forced sales of takeover debt at distress prices. KKR, which alone accounts for 25% of outstanding but unfinanced takeover deals, is raising money from investors that will be used to snap up such unwanted paper, in hopes that it will rebound.

Source: Business Week

Kraft Looking for Buyers for Post Cereals Unit

It’s never much fun being No. 3 in a market, and the food giant has apparently decided enough is enough. It’s scouting for buyers for Post, maker of such well-known brands as Raisan Bran and Shredded Wheat, in a sale that could raise as much as $3 billion. With takeover financing largely unavailable, it’s expected that few if any buyout firms will enter the fray. That leaves potential trade buyers such as No. 2-ranked General Mills or Ralcorp Holdings with a clear field.

Source: Wall Street Journal

Amgen to Cut Jobs, Close Plants

Biotech firm hopes to save $1 billion next year as its struggles to cope with slumping sales of its top product, anemia drug Aranesp. Amgen shares dipped 2.3% Thursday, hitting a new 52-week low of $48.54.< /p>

Source: New York Times

TJX Raises Cost of Data Breach to $256 Million

Investors have tended to discount the impact of computer security breaches. That could be foolish., if the experience of clothing retailer TJX is anything to go by. The company suffered the biggest computer data breach in corporate history when cyberthieves stole credit and debit card numbers of 45 million customers. Skeptics warn that even the revised cost estimate could prove too low.

Source: Boston Globe

Macy’s Still Struggling to Get May Deal Right

Department store chain’s decision to rebrand all the May Department Stores units it acquired with the parent’s name has so far proved a non-starter. Many customers deserted when mid-market Macy’s raised prices and cut back on promotions. Others from tonier May units such as Marshall Field’s found the New York retailer was too down-market for their tastes.

Source: New York Post